St Mark Homes Plc - Half-year Report

26 September 2019

St Mark Homes Plc

(''SMH'' or “the Company'')

Unaudited Interim Report for the six-month period ended 30 June 2019

Review of operations for the six month period ended 30 June 2019

The Directors are pleased to announce the interim results for six months ended 30 June 2019. The company continues to trade profitably as a residential and mixed use property developer. The trading environment remains challenging and the Directors are pleased to report a pre-tax profit of £84,407 (2018 - £18,272) for the period.

The Company paid an interim Ordinary share dividend of 5.5p per share in June 2019. The Company also paid an interim dividend of 5.5p July 2018. The net assets per share stands currently stand at 126p (June 2018 – 134p) at the end of this interim reporting period having accounted for the payment of both the July 2018 and June 2019 interim dividend payments.

A summary of the progress on our current projects is set out below: 

Sutton High Street, Sutton

The Company has invested in a regeneration property development venture at Sutton High Street.   Phase I of the development project (consisting of 41 residential units over ground floor retail space ) was completed in October 2016.   All residential units have been sold on this first phase.   The Company retains an interest in the remaining ground floor commercial space of phase I, as well as phase II of the project ( currently a disused and derelict public house site ) where we hope to secure planning permission for redevelopment in association with our development partner.   Planning on phase II has been challenging but following the clarification as to what will be acceptable to the Planning Inspectorate in July 2019 we plan to submit an acceptable ( and compliant ) planning application for a new build development of 30 residential units over ground floor commercial / retail space on phase II in Autumn 2019.

Gwynne Road, London, SW11

St Mark has a 40% joint venture interest in the redevelopment of the site at 55- 66 Gwynne Road, Battersea.   Construction of this mixed use scheme (33 residential flats over ground and first floor commercial/retail space) is completed and all residential units are now sold. The commercial sector is under offer with solicitors now instructed.   

London Road, Hounslow, TW3

St Mark has taken a joint venture interest of up to 40% in this development of 34 all private flats located in Hounslow, West London.   At the 30 June 2019 4 flats remain unsold and 2 of which have been sold since the period end in July 2019 leaving just 2 flats remaining for sale.    

Heron House, Wembley, HA9

St Mark has a joint venture interest of 40% in this development of 40 flats ( over new ground floor commercial offices ) in Wembley, Middlesex. Construction is set to commence later in 2019 and is scheduled to be complete in the latter part of 2021.

Uxbridge Road, Hanwell, W5

St Mark has taken a joint venture interest of 50% in this development of 36 apartments ( over new ground floor retail space ) and seven houses in Hanwell, London  Construction is set to commence in the latter part of 2019 and is scheduled to be completed in the early part of 2021.

Signed on behalf of the board on 26 September 2019

S Ryan
Director

Unaudited Consolidated Profit and loss account and statement of comprehensive income for the six months ended 30 June 2019

                                                           2019      2018

Group turnover                                          126,000   139,200

Cost of sales                                          (14,000)  (13,200)

Gross Profit                                            112,000   126,000

Administrative expenses                               (222.256) (188,882)

Operating Profit/(Loss)                               (110,256)  (62,882)

Negative Goodwill Released                                    -    37,993

Share of operating profit in joint venture              135,734    17,629

Profit before interest and taxation                      25,478   (7,260)

Interest receivable and similar income                  163,286   124,790

Interest payable and similar charges                  (104,357)  (99,258)

Profit/(Loss) on ordinary activities before taxation     84,407    18,272

Taxation on ordinary activities                        (16,038)     3,747

                                                       ________  ________

Profit /(Loss) on ordinary activities after taxation     68,369    22,019

                                                       ________  ________

Profit/ (Loss) per share – basic and diluted

Ordinary shares                                            1.6p      0.5p

All amounts relate to continuing activities.

All recognised gains and losses in the current and prior period are included in the profit and loss account.

Unaudited Consolidated Balance sheet
at 30 June 2019

                             Jun-19      Jun-19     Jun-18     Jun-18

Non Current assets

Tangible assets                                690                   921

Current assets

Debtors                      7,940,030             8,765,671

Cash at bank and in hand     1,169,197               753,749

                              ________              ________

                             9,119,227             9,519,420

Creditors: amounts falling

due within one year        (2,432,379)             (153,315)

                              ________              ________

Net current assets                       6,686,848             9,366,105

                                                               _________

Creditors: amounts falling

due in more than one year              (1,122,680)           (3,465,157)

                                          ________             _________

Net Assets                               5,564,858             5,901,869

                                          ________             _________

Capital and reserves

Called up share capital                  2,206,501             2,206,501

Capital redemption reserve               1,009,560             1,009,560

Other reserve                              211,822               211,822

Share Premium                              375,246               375,246

Merger Reserve                             327,060               327,060

Profit and loss account                  1,434,669             1,771,680

                                          ________              ________

Shareholders’ funds                      5,564,858             5,901,869

                                          ________              ________

Notes forming part of the unaudited interim report
for the six months ended 30 June 2019

1.         Accounting Policies

The financial information contained in this unaudited interim report has been prepared on the basis of the accounting policies set out in the St Mark Homes PLC audited financial statements for the year ended 31 December 2018, which have been applied consistently. The financial statements for the year ended 31 December 2018 have been filed at Companies House. The company’s auditors Kingston Smith LLP have not reviewed these interim accounts.

2.         Taxation on Profit on ordinary activities

For the purpose of this unaudited interim report, the tax charge is calculated at 19% (2018- 19%) of the taxable (loss)/profit for the period.

3.         Earnings per share

Earnings per share has been calculated by dividing the profit after tax for the period of £68,369 (2018 - £16,585) by the weighted average number of ordinary shares in issue of 4,413,003 (2018 - 4,413,003).

4.         Non-Statutory Financial Statements

The financial information contained in this unaudited interim report does not constitute full statutory financial statements as defined by section 240 of the Companies Act 1985.

The Directors of St Mark Homes PLC accept responsibility for this announcement.

- Ends –

 For further information, please contact:

St Mark Homes Plc

Sean Ryan, Finance Director                      Tel: +44 (0) 20 7903 6777

                                                  seanryan@stmarkhomes.com

Alfred Henry Corporate Finance Ltd, NEX Exchange
Corporate Adviser

Jon Isaacs / Nick Michaels                       Tel: +44 (0) 20 3772 0021

                                                       www.alfredhenry.com